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Hyosung's 'RE:GEN' Efforts for Climate Change Response

Hyosung demonstrates its commitment to preserving the environment through a research and development investment of 104.3 billion won and the registration of 3,310 patents. Why does Hyosung prioritize environmental concerns to such a great extent? In South Korea, the period with the heaviest rainfall during the year is commonly referred to as the ‘monsoon' season. However, due to the rapidly changing climate, there has been speculation about the potential obsolescence of the term 'monsoon.' This is caused by the fact that the weather patterns during the supposed 'monsoon' season have become more and more unpredictable. As a result, people have been making comments such as 'it doesn't feel like a monsoon' or 'this doesn't seem like the monsoon season.' This phenomenon is not exclusive to Korea; it is observed globally as the world grapples with the consequences of rapid climate change. ESG management has gained significant attention as an alternative as a consequence. ESG management encompasses the belief in taking into account environmental responsibility, social accountability, and governance improvement in order to achieve sustainable progress. The importance of environmental considerations is increasing rapidly. Hyosung is committed to conducting research and development efforts that benefit future generations. We are actively promoting eco-friendly initiatives and projects that specifically target the issue of climate change. Three Efforts to Save the Earth Hyosung's businesses are committed to environmental efforts, with a strong emphasis on extensive, continuous, and systematic approaches. This involves the development of materials that safeguard biodiversity and the envisioning of a society with low carbon emissions in the future. 1) Wide-Ranging and Focused Efforts (RE:GEN GUARDIAN) Hyosung is currently implementing a seagrass conservation project with the goal of reducing carbon emissions. Seagrass is a marine organism that plays a crucial role in the absorption of carbon by the world's oceans and coastal ecosystems. It is considered a significant contributor to the concept of blue carbon, which plays a great role in reducing greenhouse gas emissions. Hyosung, along with our subsidiaries Hyosung TNC and Hyosung Heavy Industries, has been actively engaged in seagrass conservation efforts. We have successfully established seagrass forests and have been effectively managing them for a period of one year. Additionally, we have continued our commitment to seagrass conservation for a total of three years. The seagrass conservation project has yielded significant results, as evidenced by a 2.5-fold increase in the number of benthic animal specimens since the establishment of the seagrass forest. The number of species has increased by 1.5 times, and the diversity index of organisms has increased by 1.2 times. Hyosung Chemical is also preserving biodiversity through a collaboration with the Cheongju Zoo's Animal Behavior Enrichment Program for endangered species. The Animal Behavior Enrichment program offers captive animals that have lost their natural instincts due to captivity opportunities to engage in active feeding and abundant movement. This activity improves the physical and mental health of non-habitat protected species and positively influences their reproduction. It is anticipated that the Animal Behavior Enrichment program will contribute to the preservation of various animals on Earth. We are actively involved in projects aimed at promoting plant diversity. Hyosung Advanced Materials is currently undertaking initiatives to restore the habitat of Dysophylla yatabeana Makino and conduct cleanup efforts on pet beaches. As part of our ecosystem preservation and restoration project, we have established a planting site for the endangered Class II Dysophylla yatabeana Makino and donated 2,000 seeds. Additionally, through the 'One Company, One River' program, we are dedicated to preserving plant diversity by eliminating harmful plants during pet beach cleanup activities. 2) Sustained Efforts: Creating a Hydrogen Ecosystem Hyosung firmly believes that it is absolutely crucial to continue making efforts to protect the Earth's environment. It is crucial for our society to shift away from relying on fossil fuels, as they are a major contributor to the rise in carbon emissions. Instead, we should focus on adopting sustainable energy sources that not only address our current needs but also hold promise for the future. That is why Hyosung is currently involved in the design of a hydrogen society. Hyosung Chemical and Hyosung Heavy Industries are on the verge of completing the world's largest LIQUID hydrogen plant. Creating a hydrogen ecosystem is one effort to address climate change by reducing carbon emissions. We are partnering with The Linde Group, a global gas company, to construct a remarkable plant with the capacity to produce 13,000 tons of LIQUID hydrogen annually. This plant has the potential to greatly enhance the hydrogen ecosystem. In addition, the LIQUID hydrogen produced at this facility will be supplied to the hydrogen refueling stations supported by Hyosung Heavy Industries to expedite the commercialization of hydrogen-powered vehicles. 3) Meticulous and Systematic Efforts: regen, PET Tirecord, and POKETONE Hyosung TNC, a leading chemical fiber company in Korea, is introducing environmentally friendly fibers under the name regen. Since the pioneering development of eco-friendly recycled Polyester fibers in 2008, Hyosung TNC has successfully expanded its production to include eco-friendly fibers for all three major chemical fibers: polyester, nylon, and spandex. For the first time in Korea, regen Polyester, a material made from 100% recycled plastic bottles, can reduce carbon dioxide emissions by 40-50% compared to conventional yarns. In nylon, regen Ocean Nylon, the world's first recycled fiber developed in 2007, can reduce carbon dioxide emissions by 73%, fossil fuel use by 75.7%, and water consumption by 98.6% compared to conventional nylon. In addition, regen Bio-Based, the world's first bio-spandex processed from natural raw materials derived from corn instead of coal, can reduce water use by 39% and carbon dioxide emissions by 23% compared to conventional spandex. What's more, every ton of regen Bio-Based used saves as much carbon as 378 pine trees absorb in a year. Hyosung Advanced Materials has successfully obtained the world's first ISCC PLUS certification for its eco-friendly PET tire cords. This certification is internationally recognized and signifies its dedication to producing environmentally friendly materials. The high-strength Recycled-PET yarn, which is made from recycled PET bottles, has also been certified by international eco-friendly certification organizations with the Global Recycled Standard (GRS) certification. Furthermore, we have successfully created industrial Bio-PET yarn by extracting Bio-EG from plant-based materials. This innovative yarn is then used in the manufacturing and distribution of tirecords and car mats. Lyocell tirecords are made from cellulose extracted from wood and can be used as a substitute for rayon tirecords, which are commonly used as reinforcement material in high-speed tires. The utilization of Lyocell tirecords helps prevent air and water pollution since no harmful substances are produced during the manufacturing process. This contributes to the preservation of the environment. TANSOME®, a remarkable super fiber, has garnered attention for its practical applications due to its exceptional strength, which surpasses that of steel by over ten times, while weighing only a quarter as much. Carbon fiber is a lightweight material that is widely used in various industries, including aircraft manufacturing, space vehicles, and wind turbine blades. It is often referred to as a super fiber due to its strength and heat-resistant properties. Additionally, it is utilized in the manufacturing of fuel tanks for environmentally friendly hydrogen cars and high-pressure containers for natural gas, thereby making a valuable contribution to the eco-friendly energy sector. Hyosung Chemical has introduced a new eco-friendly polymer material called polyketone, world’s first of its kind to be commercialized. It is composed of carbon monoxide and olefins (ethylene, propylene), which are major contributors to air pollution. POKETONE is the brand name of Hyosung Chemical's eco-friendly engineering plastic polyketone. Polyketone is a new material that can replace plastics and has the effect of reducing carbon dioxide generation just by using it. This is because each ton of polyketone produced reduces carbon monoxide by about 0.5 tons. In particular, it is harmless to the human body and does not produce any harmful substances, so it can be applied to food containers and children's and infant products. It can also be used in various other fields such as automobiles and electronics, industrial pipes, LEDs, cable ties, tirecords, and industrial ropes and hoses. Prioritizing eco-friendliness has become essential for becoming a premium brand in the global market and ensuring the well-being of future generations. Hyosung's eco-friendly and climate change response businesses are not merely additional ventures for ESG management; instead, they serve as the driving force behind Hyosung's new growth and form the core of its innovation. Hyosung is actively taking practical and tangible steps to tackle climate change. We have implemented comprehensive and targeted initiatives across all our business units, and are dedicated to maintaining and expanding these efforts in the future. Hyosung's ESG brand, RE:GEN (Reply to Every Generation's Future), represents Hyosung's commitment to addressing the needs of every generation. It combines a vision and mission that envisions a happier and more sustainable future for all generations, utilizing Hyosung's strengths. This future is intended for those living in the present as well as future generations. Its goal is to leverage all ideas and knowledge in order to create a future that is both happier and more sustainable for everyone. Our company is dedicated to earning the trust of our customers through the use of cutting-edge technology and our commitment to creating a sustainable future for all. Hyosung's ESG is committed to becoming a company that prioritizes technology solutions for the benefit of customers, the planet, and future generations. We will strive to create a brighter future for everyone.



Partnership between Vietnam and Hyosung

2022 marked the 30th anniversary of diplomatic relations between Korea and Vietnam. Over this significant period, the official names used to address each other changed from "South Chosun" and "North Vietnam" to "Republic of Korea" and "Vietnam," reflecting the progress made in bilateral relations. Since the establishment of diplomatic ties in 1992, the trade between the two countries has increased by 175 times. South Korea has become Vietnam's largest investor, and the number of Koreans living in Vietnam has reached 170,000, while there are 230,000 Vietnamese nationals residing in Korea, indicating the close relationship between the two countries. On the 30th anniversary of diplomatic relations, the two countries upgraded each other to a "comprehensive strategic partnership." In 2023, 205 economic envoys visited Vietnam with the president to hold a "Korea-Vietnam Business Forum." The population of Vietnam is approximately 100 million, with an average age of only 32 years. It is regarded as a country with high growth potential in the future. With low labor costs, it is gaining attention as a country that can play a role as the 'world's factory,' following China. As a result, South Korea has become the top foreign direct investor (FDI) in Vietnam. Many countries, companies, and businesspeople are paying attention to Vietnam as the 'POST CHINA' and making efforts to invest. However, the partnership between Hyosung and Vietnam began much earlier, under Hyosung's global investment leadership. Anticipating the Post China, Vietnam Over the years, Hyosung has been at the forefront of relentless global investments. In the 1990s, anticipating the growth of China, we proposed the establishment of a local production and sales system in China. As a result, Hyosung's first overseas branch and the leading player in the textile industry, Hyosung Spandex, established its iconic factory in Jilin City, China. When everyone recognized China's potential and ventured into it, Hyosung sought a new stage. The place that caught their attention was Vietnam. Many expressed concerns about Hyosung's swift movements, but their determination could not be deterred. After investing significant time and effort in understanding the local situation in Vietnam, reviewing factory sites, and assessing the local conditions and market, Hyosung ultimately concluded that Vietnam has sufficient potential to become the next POST CHINA destination. In 2007, Vietnam became the 150th member country of the World Trade Organization (WTO), a time when it was accelerating its reforms and opening up to the world. During this period, Hyosung established its first subsidiary in southern Vietnam's industrial complex. Hyosung's ambitious vision for a greater leap on the global stage aligned with Vietnam's growth, and the two became a reality. Hyosung's expectations were right. Vietnam has transformed into a globally integrated production base for Hyosung's core products, including textiles, industrial materials, chemicals, and heavy industries. With overseas facilities in 90 locations across 28 countries worldwide, including Europe, South America, and North America, Vietnam is becoming an increasingly important front-line base for Hyosung's global market expansion and a crucial partner. Unprecedented Success Hyosung in Vietnam Dong Nai Province Industrial Complex, located one hour away by car from Ho Chi Minh City, was once predominantly covered with rubber tree plantations as recently as 2007. The area was practically barren, with the most residents making a living through farming. Hyosung constructed a factory in 2007, measuring over 90 football fields and 1.2 million square meters total. This scale was astonishing for other companies that had entered and the Vietnamese government itself. As a result, Hyosung achieved profits for ten consecutive years since the year following the establishment of its first Vietnamese subsidiary. And in 2014, the company recorded sales up 2000 percent compared to its first year. Following its first subsidiary in Vietnam, Hyosung established Dong Nai Corporation in 2015, expanding and sustaining its investment in Vietnam. This demonstrates Hyosung's resolute investment approach, which anticipates global investment trends and the future. Dong Nai Industrial Complex has transformed into the largest industrial zone in Vietnam, with over 5,000 employees. In 2012, Hyosung was recognized as an "Excellent Job Creation Company" by Dong Nai Province and received an appreciation plaque. The establishment and investment of Hyosung Corporation in Vietnam have been steadily expanding since 2007. - Established Dongnai Corporation in 2015 as a global production base, with the largest capacity for producing Spandex tire cords in a single factory. - Established a $1.4 billion investment and polypropylene production plant for the southern Kaemap Cai mep Industrial Complex in 2018. - Established tire reinforcement and automotive airbag production factories in Tam Thang IP, Vietnam - Constructed an ATM manufacturing plant in the northern Yenphong Industrial Complex in Vietnam in 2020. - Established an industrial motor production corporation in the Nhơn Trạch 5 Industrial Complex in 2022. - Planned additional facilities for a nylon factory in 2024. - Planned establishment of a Hyosung Advanced Materials carbon fiber factory in Thai Binh Province, Vietnam. As such, Hyosung Group's state-of-the-art production facilities have been fully integrated across Vietnam. As of 2022, Hyosung's cumulative investment in Vietnam amounts to 3.9 billion dollars, making it the third-largest domestic group to enter Vietnam. It has recorded sales of 3.2 billion dollars and is expected to surpass 4 trillion won in sales this year. Hyosung's sales account for 1% of Vietnam's total exports, creating a partnership that grows together. The Power of Local Vietnam in Achieving First Place "Vietnam" and "World's Number One" have become inseparable words. The Vietnamese and Dongnai corporations boast the highest production capacity as a single factory among Hyosung's global production bases, and all Hyosung products, which remain the No. 1 in the world market, are produced in Vietnam. Spandex, developed with Hyosung's proprietary technology, has become the global market leader just 10 years after its launch. Starting as a latecomer, Hyosung has achieved the top position globally as a tire essential reinforcement material, supplying uniform products that match the world's top brands domestically and in overseas factories. This reputation extends to tire cords and yarns for automotive safety belts and airbags. Hyosung established a local-centric operating policy in the early stages of its entry into Vietnam, which has led to such achievements. Hyosung has been transferring its expertise in production, quality management, sales, and other business stages to the local people while developing and supporting educational programs to enable Vietnamese workers to grow as managers. This makes Hyosung products the world's number one by allowing them to excel. The number of employees hired by Hyosung in Vietnam has increased from 190 in the first year to over 10,000. Hyosung is now the most popular workplace in Vietnam, known for producing top-quality products. With its pride in producing the best products, high wages, and welfare benefits, young talents in Vietnam aspire to work for Hyosung. Hyosung's Social Contribution Impressed the Vietnamese Community Good companies are more than just evaluated based on job creation or revenue alone. Hyosung Chairman Hyun-Joon Cho has long emphasized that “Vietnam is home to Hyosung's largest global production corporation, and Hyosung can also be said to be a member of the Vietnamese community." According to Hyosung's management policy, which emphasizes corporate social responsibility, Hyosung continues to positively influence on the local community in Vietnam even now. Hyosung's overseas medical volunteer group, "Miso Expedition," has provided free medical services in Ho Chi Minh City and Dong Nai Province since 2011. Up to now, 15,000 local residents have benefited from their services. We have also continued our efforts by donating to COVID-19 response, providing education and support for unmarried mothers and marginalized groups, and sponsoring underprivileged children in low-income areas. In 2018, during a donation ceremony for Hyosung Vietnam's COVID-19 response fund, the Chairman of the Central Committee of the Vietnam Fatherland Front at that time, Do Van Chien, expressed his gratitude to Hyosung Vietnam for their contribution of 10 billion dong (440,000 dollars). He stated, "Hyosung Vietnam has been supporting vulnerable groups through various social contribution projects nationwide" and also thanked Hyosung for their participation in the government's COVID-19 response efforts. In addition, Hyosung is making efforts in Vietnam to engage in ESG management activities, ranging from environmentally friendly smart base construction that utilizes sustainable materials to the producing spandex, tire cords, and ATMs. Hyosung's CSR, or corporate social responsibility, is highly regarded in Vietnamese society and has become an exemplary model for overseas companies. - In 2012: Dong Nai Province received an award for 'Outstanding Employment Creation Enterprise.' - In 2015: Award for Best Social Responsibility for Activities - In 2021: Selected as an excellent cultural heritage social advocacy company. - In 2022 & 2023: Received commendation for being selected as a leading sustainable company for two consecutive years. Companion, More Than a Business Partner- Vietnam It has been 16 years since Hyosung entered Vietnam. During this time, Hyosung and Vietnam have cooperated and grown together, becoming important and special partners beyond mere cooperation. Vietnam has become a global outpost for Hyosung's second leap, while Hyosung has contributed to the country's economic and community development in Vietnam. Young talents who have graduated from the top universities in Vietnam perceive Hyosung as a desirable global company to work for. Moreover, Hyosung has established itself as a trusted brand representing Korea and leading the future lifestyle, especially among Vietnamese citizens who love the Korean wave. All future Hyosung factories in Vietnam will be equipped with smart factory systems. This will be a catalyze manufacturing innovation by integrating IT technologies such as big data into core manufacturing processes. Additionally, it will lead to the establishment of a global standard manufacturing environment that addresses carbon neutrality and the climate crisis. Hyosung has grown together with Vietnam and aims to become a key and reliable partner for future growth. To achieve this, Hyosung promises continuous investment and commits to running together for global sustainable growth. We look forward to a long-term enduring partnership between Hyosung and Vietnam.



True ESG Management, Hyosung's ESG Brand RE:GEN

Summer is getting hotter and hotter every year. Environmental pollution has caused drastic consequences, such as rising sea levels, leading to a climate crisis. The climate crisis has brought various changes: heatwaves, heavy rainfall, and typhoons. Not only governments and business organizations but also the public have begun to directly experience environmental issues. Moreover, as public awareness increased, environmentally friendly started getting attention. This trend toward an environmentally friendly society has sparked a boom in ESG(Environmental, Social, and Governance) management among businesses. ESG management refers to a company's management approach that incorporates long-term environmental values, social responsibility, and improvements in governance. It serves as a key element for transparency in corporate management and ensures the sustainability of businesses. Consumers perceive This ESG management strategy very positively, and it has naturally become part of companies' marketing efforts. ESG activities, however, can end up as a mere sham if they are solely focused on marketing strategies to project a positive image for the company and consumers. Claiming to do ESG activities without actions called 'ESG washing,' can deceive consumers and cause great damage to investors. Hyosung strives to implement ESG management by actively engaging in practical and substantial initiatives. Hyosung does not engage in deceptive practices or claim to have done things it hasn't accomplished. Hyosung's ESG Management, Different Yet Significant Chairman Cho Hyun-Joon of Hyosung Group has been recognized as a prominent leader by receiving both the "Korea Management Grand Prize" and the "Korea CEO Grand Prize," the most prestigious awards in the Korean business field, consecutively in 2022 and 2023. Kim Jae-gu, the President of the Korean Academy of Management, described Chairman Cho Hyun-Joon as a model for the role of the top executive in South Korean companies, showcasing the managerial philosophy and activities that individual companies should pursue in the global business environment of the 21st century. We are living in an era of innovation and great transition. The various innovations brought by the "digital" transformation and the shift to "contactless" interactions triggered by COVID-19 fundamentally change how we live. And the value of "sustainability," considering environmental friendliness, has become a social norm and requirement, leading to a transformation in companies' missions and business practices. In this rapidly changing landscape, there is a driving force behind Chairman Cho Hyun-Joon, the youngest recipient of the Korea CEO Grand Prize, being recognized as a leading figure in South Korean business management. This is the unique and exceptional ESG management of Hyosung. Before the “ESG” In 2008, Hyosung TNC succeeded by becoming the first company in Korea to produce polyester yarn made from recycled PET bottles. This environmentally friendly technology enables a reduction in carbon emissions equivalent to the amount absorbed by 136 trees over 50 years for every ton of yarn produced. This was when Hyosung's ESG brand, 'RE:GEN,' was established. Furthermore, Hyosung TNC obtained the world's first certification for the 'GRS' (Global Recycled Standard), a global standard for recycled fibers. Hyosung TNC initiated research and development on eco-friendly yarn using discarded fishing nets and PET bottles as early as the early 2000s, well ahead of the current focus on ESG management for domestic and international companies. The term 'ESG' was first used and officially recognized in international society, including the United Nations in 2006. Hyosung had been focusing on environmental sustainability, corporate social responsibility, and symbiotic management before the concept of 'ESG' and 'ESG management' became firmly established in the international community. Hyosung has been proactive in reading the trends of the times and making substantial and practical investments. Hyosung’s Unique Technological DNA in Its ESG Larry Fink, the Chairman of BlackRock, the world's leading asset management company, quoted a response from 63% of millennial workers in 2019, stating, "The primary purpose of a corporation is to improve society's qualitative aspects rather than just generating profits." For the public, who are both workers and consumers, it is important for companies to prioritize environmental considerations over the technologies or products they develop. In response to this, Hyosung Group's Chairman Cho Hyun-Joon stated, "We will not approach ESG merely as declarations, philosophy, or ethics." In the current situation where innovative actions are urgently needed for the progress of humanity and a better tomorrow, he boldly decided to change everything, including the company's goals, vision, and culture. Hyosung's ESG management, as Chairman Cho Hyun-Joon advocates, differs from other companies in that it is applied across all business areas. The goal is to make corporate social responsibility an integral part of the company's operations rather than a separate activity, serving as a driving force for innovation and a distinctive competitive advantage within the group. This approach is made possible by Hyosung's commitment to technological development, evident from the establishment of its technology research institute as the first among private Korean companies in the early 1970s. Hyosung's technological DNA, developed as a latecomer, led to the independent development of tire cords and spandex, ultimately securing the top market share worldwide. This DNA has continued to evolve through consecutive eco-friendly technological advancements in areas such as fibers, wind power, carbon fibers, and hydrogen businesses during the 2000s. Hyosung's technological DNA, spanning over half a century, has become a tangible ESG asset, already accumulated within each company of Hyosung Group. RE:GEN , Reply to Every Generations Chairman Cho Hyun-Joon stated about ESG management, "Hyosung's ESG management is a completely different approach, with entirely different goals and methods, creating a completely different future from what companies have pursued in the past. We will participate in that future with a unique imagination, ideas, and entirely different technologies." In 2023, Hyosung established ESG brand and clearly defined the company's ESG goals for the entire company. The newly established an ESG brand, 'RE:GEN,' embodies the meaning of "Response to Every Generation." It signifies the continuous innovation and efforts in corporate activities to respond to the sustainability of all generations, including the current and future generations. The management activities encompass integrating substantial technologies with innovations and efforts for environmental and social improvements, creating a virtuous cycle between society and the company throughout the process, including the results and achievements. Starting as an eco-friendly fiber brand and evolving into a premium global brand, the ESG brand 'Reply to Every Generation's Future, RE:GEN' will become the identity of Hyosung. RE:GEN represents technology, products, and the innovation that Hyosung strives for. From Partner Companies to Global Corporations, an ESG Accelerator Chairman Cho Hyun-Joon stated, "RE:GEN is not just a brand for Hyosung. It will be a practical alliance and companionship for all generations, where more companies collaborate and coexist to create a better future together." He actively promotes support programs for enhancing ESG management not only within Hyosung but also among partner companies. Hyosung's ESG management is influencing not only domestic companies but also global corporations. "regen Project," which started in 2008 to produce discarded waste fishing nets and waste plastics as recycled fibers, has established itself as an exemplary standard business in the domestic eco-friendly textile market. Keep an eye on the regen Project, an example of other companies, can influence the world beyond the textile market. We also hope that Hyosung's ESG brand RE:GEN will become an ESG Accelerator as it grows with its partners. Starting from 2025, South Korea has mandated ESG information disclosure for listed companies with over 2 trillion KRW on the KOSPI. From 2030, it will be mandatory for all listed companies. This will serve as an effective mechanism to enforce corporate obligations and social roles regarding the environment, as well as increase transparency in corporate governance. Therefore, companies that have previously used ESG management as a mere marketing tool are now required to actively practice substantial ESG management. Under the leadership of Chairman Cho Hyun-Joon, Hyosung Group is committed to ESG activities that elicit positive responses from consumers and not only generate profits for the company but also lead the way in institutional trends. It will continue to evolve as a company that other businesses aspire to follow by implementing tangible ESG initiatives.



Hyosung Way: Hyosung's Commitment to Its Customers

The global supply chain crisis caused by a pandemic and war that paralyzed the world has brought various business challenges. Consequently, the ability to swiftly restructure systems and adapt to the situation, known as “agility,” has emerged as a key competitive advantage for companies in ensuring business continuity. The ability to be agile is being emphasized as a crucial factor for companies to adapt and thrive in the dynamic business environment. This agility enables them to make swift and significant investments, reconsider their mid- and long-term strategies, and redefine their approaches to stakeholder communication. Agile Management: Rapidly Adapting to a Changing Environment Domestic group companies’ traditional business operating methods have been successful for a long time. Due to their large size, rigid culture, and centralized system, they have difficulty adapting quickly to rapidly changing industry environments, causing them to lack creativity and flexibility. As a result, a new management called Agile management emerged. The term "Agile'' is an adjective that means "quick" or "nimble." Particularly in business operations, it refers to a strategy that enables swift responses to changes. This phrase has been around since 1957, but widespread adoption began in 2001 when software developers published the "Agile Manifesto." This manifesto outlined a philosophy that distinguished them from traditional development methodologies.. However, to utilize this efficiently, it should not be applied through the overall operations of a company or a single business task. Rather, it should be applied by adopting new industries or project-centered approaches such as task forces (TF). To implement Agile management, Hyosung Group has established Smart Factory Task Forces (TFT) in each business units and introduced new technologies into its systems. The company collects and analyzes data on product status and equipment conditions, from raw material imports to production, shipment, and control processes. Hyosung Group also collects customer voice (VOC) data from its 62 global trade corporations and offices in countries such as China, Vietnam, Turkey, and Brazil and across 32 other production corporations. This information is then stored in a database and utilized for business purposes. Additionally, the company has partnered with MetaGalaxia, a blockchain expert, to develop a curated NFT platform based on blockchain technology in partnership with ST Telemedia Global Data Center. Hyosung Group is developing a digital-based Agile management system through all these efforts. Agile management is about more than just quick responses. It can also be characterized by proactive communication and the utilization of technology, particularly among the millennial generation. Hyosung Group utilizes the metaverse platform “Gather Town” to overcome the limitations of remote education and foster a sense of community and camaraderie among new employees. They conduct onboarding training by creating virtual spaces that resemble offline settings such as the company headquarters, auditoriums, and factories. New employees explore these virtual spaces using avatars, gaining insights into job-related information and company culture. Hyosung Group's transformation goes beyond that. A transition towards independent management has been made by each affiliate to ensure streamlined operations. They are led by professionals with expertise in their areas. We aim to foster a new corporate value system based on agile decision-making based on our deep knowledge of each product and industry. Therefore, Hyosung corporate value system is key to shaping the perception of sound management among employees and the general public. Hyosung's Agile Management Combines with 'Hyosung Way' to Create a New Philosophy. Hyosung Way: Embodies Hyosung’s Value Hyosung’s new brand concept called 'Agile Promise,' embodies the meaning of "an agile commitment towards customer engagement." Based on this concept, they have set their brand mission as “being the first to deliver innovation to customers and a sustainable future." Hyosung Way is the value structure for delivering the capabilities and mindset needed for all Hyosung employees to achieve new goals. It serves as a global company that leads innovation through Agile Promise values. In the modern era, the public evaluates companies based on their products and their production processes, such as ESG management. Departing from the traditional focus on outcomes, there is a growing recognition of the significance of role-based values in actively contributing to the "process" of societal change and success. In light of this, Hyosung introduces "excellence," "innovation," "responsibility," and "trust" as the core values for meeting the needs of customers, adapting to evolving times, and fostering collaboration with social organizations. 1. The highest value recognized by global customers - “Global Excellence for Customers” With a global mindset, technology, and expertise, we listen to our customers’ voices and provide the best values. 2. The value of pursuing constant change and innovation - “Striving for Innovation” Beyond management innovation, we continuously and rapidly pursue new opportunities to generate added value and ensure competitiveness. 3. The value of taking responsibility for the future society - “Responsibility for the Future” To build a sustainable future, every member will be held accountable for upholding our commitment to change and innovation through self-directed leadership that goes beyond authority and roles. 4. The value of trust for fostering flexible synergy. - “Trust for Synergy” We will build a dynamic, collaborative ecosystem by generating capabilities within and outside the organization based on mutual trust, respect, and cooperation. We will distribute resources to enable synergy and adapt quickly, fostering a culture of agile collaboration. Through Hyosung Way, we aim to become a pioneering company fulfilling its promises to customers. We strive to be a global innovative solutions provider, leading the way in this transition era. Moreover, we aspire to be a company that turns imagination into reality and deeply impacts the lives of our customers. Employees’ promise to practice Hyosung Way, Hyosung Credo Hyosung Group recognized the need for a structured system of activities with specific expressions to ensure consistency of Hyosung Way across employees and marketing channels. Additionally, they identified that the existing Hyosung Way lacked the ability to effectively communicate the company's value system. Therefore, they reinterpreted Hyosung Way as an employee action concept and implemented the Credo method, which emphasizes core principles, to help customers better understand Hyosung's values. By translating Hyosung Way into actionable behavior, Credo represents employees' commitment to embody Hyosung Way. Global Excellence for Customers: An agile attitude to adapt and change quickly to provide the best value to customers. 1. We prioritize the voice of the customer above all else. 2. We pledge to consistently deliver valuable products and services as a top priority. 3. We make every effort to earn recognition as the best from the customer's point of view. 4. We aim to achieve worldwide competitiveness with a global perspective. Striving for Innovation: Courage to face new challenges without fear 1. We will constantly strive to learn and develop new competencies to create opportunities. 2. We will fearlessly implement changes more effectively by responding quickly and decisively. 3. We will be at the forefront of innovation with a positive mindset 4. We will embrace challenges as opportunities for innovation rather than being afraid of them. Responsibility for the Future: Leveraging business influence for customers and society. 1. We will take charge of our responsibilities with a sense of ownership as experts in our field 2. We will always uphold our promises to our customers with a strong sense of accountability, 3. We will be mindful of our technology’s impact on society and the environment. 4. We will prioritize the value of human life and never compromise on safety. Trust for Synergy: Communication and growth through flexible team culture. 1. We will work together towards a common goal by fostering teamwork. 2. We will create a culture that embraces and supports personal growth for everyone. 3. We will aim for clearer, more transparent, and more extensive communication. 4 We will cooperatively work with stakeholders based on mutual respect and trust. Hyosung Group Chairman Hyun-joon Cho states, "In times of change, companies must transform themselves through agile management based on speed and efficiency to survive and create opportunities for success." He also stated, "We need to make the company's constitution strong and solid, and through nimble collaboration between departments, we must be able to quickly, flexibly, and efficiently embrace technology and trends." Changing markets can bring opportunities for some, and crises can present crises for others. By following Hyosung Way through Agile management, Hyosung will continue to grow.



Hyosung's Unique Keyword: Customer-centric Management

In 2009, a global consulting firm raised serious concerns about Hyosung Heavy Industries' ESS (Energy Storage System), leading them to recommend its discontinuation. However, Hyosung Heavy Industries shocked the world by triumphantly securing a substantial package deal for the providing, installing, and constructing comprehensive ESS products abroad in 2022. Hyosung Heavy Industries accomplishment not only set the company apart as the first domestic company to achieve such an accomplishment but also necessitated outdoing 18 global companies, including Tesla. The ESS (Energy Storage System), a vital component for storing renewable energy, has undeniably become an essential device. Hyosung's exceptional competitiveness astonished the world in business arenas that even prestigious global consulting firms thought challenging. What is the key to our remarkable success? Hyosung’s success is derived from its unwavering commitment to 'Customer-centric Management.' Hyosung has succeeded by prioritizing customer satisfaction as our core business objective. Hyosung’s relentless dedication to understanding and meeting customer needs has enabled us to achieve success. However, the current downturn in the global economy calls for a broader perspective. Hyosung acknowledges that more than focusing solely on customer satisfaction is required. The crisis is becoming increasingly frequent as the world undergoes rapid transformations due to climate change, viral pandemics, and declining birth rates. Hyosung is taking its management policy to the next level by listening not only to the voice of the customer (VOC), which they've always emphasized but also to the voice of the customer's customer (VOCC). The key to Hyosung's own competitiveness is improving its customers' competitiveness. Listening to the Voice of Customers' Customers VOCC (Voice of Customer's Customer), a management approach that encompasses listening to the voice of customers' customers, has emerged with the primary objective of delivering the utmost level of customer satisfaction. By identifying what customers' customers desire and proposing solutions that meet their needs, it paves the way for superior outcomes. Hyosung practices VOCC management by utilizing a big data platform through its IT subsidiary, Hyosung ITX. Leveraging big data technology, it categorizes and analyzes consulting customers in real time based on keywords extracted from their discussions. Hyosung has experienced remarkable improvements in its consulting services by integrating big data technology. Thanks to big data technology, we were able to respond quickly and resolve complaints, thereby improving our counseling services. By diligently listening to the voice of the end customers and ensuring that feedback is easily and swiftly understood, Hyosung's efforts ultimately culminate in the highest levels of satisfaction, benefiting both our valued customers and their own clientele. In this manner, Hyosung strives wholeheartedly to meet not only the current needs of customers but also the unpredictable future demands, placing customer value enhancement at the forefront of all management activities, ranging from strategic planning and management systems to organizational culture and leadership. As the first company in the domestic industry to declare customer-centricity and customer-centric management, Hyosung is dedicated to satisfying customers' ever-evolving needs. Striving for the integration of businesses and customers, Hyosung endeavors to achieve growth as a global leader by fostering customer happiness and pursuing exceptional Customer Experiences. Moving beyond VOC to VOCC, Hyosung Practices Customer-centric Management To achieve all of this, keeping a close eye on customers' current situations and aspirations is crucial. Hyosung establishes strategies throughout the production cycles of its subsidiaries to secure customer competitiveness and strives to provide meaningful products and services that enhance customers' lives and businesses. The customer-centric management policy prioritizes products and services that satisfy customers over immediate profits. Despite challenging economic conditions, Hyosung continues to invest in facilities across all its subsidiaries, such as Hyosung TNC, Hyosung Chemical, and Hyosung Advanced Materials, to predict the timing of economic recovery and provide the products and services that customers desire. Firstly, Hyosung TNC's CREORA® Spandex has maintained its position as the global leader with a market share of over 30% for the past 12 years. It is a high-value-added functional fiber known as the "semiconductor of textiles." In 2023, Hyosung TNC introduced a comprehensive high-performance fiber-integrated brand named 'CREORA,' which includes not only spandex but also functional nylon and polyester materials. Hyosung TNC demonstrates its commitment to VOCC by investing in eco-friendly materials. In an era where social demands for sustainability are on the rise, ESG (Environmental, Social, Governance) management strategies have a profoundly impact corporate competitiveness. ESG management encompasses the pursuit of sustainable development through environmentally friendly practices, social responsibility, and transparent governance from a long-term perspective. Recognizing the growing demand for eco-friendly materials, Hyosung TNC proactively anticipates, invests in, develops, and commercializes in this field. Our dedication to these endeavors remains unwavering as we strive to make progress continuously. One of Hyosung TNC's prominent environmentally friendly material brands is 'regen.' Recently, we succeeded in the developing and commercializing "regen Bio-Based Spandex," making Hyosung TNC the world's first to do so. This spandex is produced by processing corn-derived raw materials. Starting with domestic production, we plan to expand production quantities by extending to our global production base in Vietnam. Hyosung TNC conducts personalized one-on-one consultations with customer businesses on an annually as part of its customer-centric management approach. This includes sharing insights on global fashion trends, industry developments and even conveying the voice of end customers that customers may not be aware of. Based on these consultations, Hyosung TNC also suggests new product ideas. Moreover, Hyosung's endeavors to proactively anticipate and invest in the future demands of customers, particularly in the realm of hydrogen, serve as a remarkable testament to its customer-centric management approach. Hyosung's commitment extends beyond mere facility investments, considering ESG management and future value considerations. By embracing sustainability and gaining a deep understanding of the aspirations of both customers and their clients, Hyosung is dedicated to green management and customer-centric practices within its hydrogen business. Led by Hyosung Heavy Industries, which holds the top market share in the domestic market with a total of 28 hydrogen refueling stations established through its hydrogen refueling station business, Hyosung Group has been actively building a value chain that extends from Hyosung Chemical (raw materials) to Hyosung Advanced Materials and Hyosung TNC (internal tank materials for hydrogen tanks and carbon fibers used in hydrogen electric vehicles). This value chain aims to strengthen the business in both hydrogen production and distribution and storage and utilization. Hyosung TNS exemplifies customer-centric management by prioritizing the convenience and satisfaction of its main customers, major financial institutions, and the end customers who utilize its services. Rather than offering generic ATMs and kiosks universally, Hyosung TNS goes the extra mile by designing and supplying products tailored to meet the specific requirements of each country's clientele. The company has recently developed solutions to ensure financial services are accessible to rural populations and elderly individuals in Spain. Despite operating as a B2B enterprise, Hyosung's global success can be attributed to its proactive approach of actively addressing the concerns faced by its customers and fostering trust through effective communication. By continuously considering the evolving needs of its customers and engaging in meaningful dialogue, Hyosung has cemented its position as a trusted global leader. Hyosung is committed to the concrete implementation of customer-centric management through the following five innovative declarations: First, proactively identify the root causes of customer issues. This includes not only meeting with direct customers but also understanding the needs of customers' clients, end consumers and the general public. Second, consider customer complaints as sources of ideas and inspiration. By doing so, it becomes possible to create enhanced customer experiences and value. Third, prioritize customers throughout all stages, from product planning to R&D and production operations. This requires internal process innovation. Fourth, empower all frontline employees with expertise and corresponding authority to represent Hyosung. They are encouraged to challenge existing procedures, technologies, quality standards, and company practices while exploring new possibilities. In this process, failures should be willingly accepted, turning them into opportunities for learning and growth within the organizational culture. Fifth, establish a smart monitoring and IT infrastructure system that enables real-time responsiveness to customer demands. Hyosung is not just a product supplier but a solution provider that closely communicates with customers, shares the vision, and resolves challenges. When the company goes beyond meeting customers' expected delivery and quality satisfaction levels to fulfill unforeseen future value, it enables an innovation where the enterprise and customers integrate, leading to growth as a global leading company. This belief is firmly entrenched within Hyosung, and it is a shared management value among all Hyosung employees. There is no doubt that we are living in an era where discerning customers are taking the lead. Therefore, Hyosung strives to comprehensively and multidimensionally understand its customers, staying ahead in identifying their future needs. Development and investments aimed at not only satisfying customers but also providing them with happiness are geared toward the next generation and all generations to come. This is the driving force that compels customers to choose Hyosung first, and it is the unique keyword that transforms challenges into opportunities—Hyosung's special approach of "customer-centric management.